Nike retail stores in SG and MY find new distribution partner

GMG, a Dubai-based retailer and distributor, has acquired Nike-only stores from the sports retailing arm of Singapore-based distribution company, SUTL Corporation. Following the acquisition, all Nike-only retail outlets currently run by SUTL in Singapore and Malaysia, will be owned and operated by GMG.

This also marks the end of SUTL's 12-year partnership with Nike. According to a joint statement by SUTL and GMG, Nike first appointed SUTL as one of  three operators in 2010 with three Nike-only stores. It subsequently became the exclusive operator of Nike-only retail outlets in Singapore and Malaysia, growing the business in both markets. The 12-year partnership also saw SUTL open Singapore's Nike Jewel Changi Airport, the largest Nike-only retail store in Southeast Asia (including India), in 2019, as well as Malaysia's Nike Pavilion KL, the first Nike Rise retail concept store in Malaysia, in 2021, SUTL said. 

Arthur Tay, chairman and CEP of SUTL, said that it has established a strong foundation to expand Nike's retail presence in the Singapore and Malaysia markets and believe it is the right time to capitalise on this success by handing the baton to a forward-looking company such as GMG, to take Nike to the next level. "Having partnered with the brand for the last 12 years, we would like to convey our deepest appreciation to Nike for providing us with an opportunity to take the brand from strength to strength," he added.

Meanwhile, GMG's deputy chairman and CEO Mohammad Baker said that the acquisitions of SUTL's Nike stores also serves as an opportunity for it to solidify its position in Asia, enabling it to further cement its long-standing partnership with Nike and expand its footprint in Asia.

GMG has introduced over 120 brands into its markets, promoting healthier and more active lifestyles through four business verticals: GMG Sports, GMG Food, GMG Health, and GMG Consumer Goods. These verticals come together under a purpose-centric vision for GMG to inspire people to win in ways that make the world better. 

Separately, Nike called for a global media review last December, and it is understood that all holding companies have been invited. The review is expected to last six months and there is a possibility of Nike appointing more than one media partner. R3 is understood to be managing the pitch. 

MARKETING-INTERACTIVE understands that Mindshare handles most of the media business outside of the US. Asia is an important region for Nike, especially markets such as China, Japan, South Korea, and India. Assembly is understood to be managing performance media in Asia and Europe, while Wieden + Kennedy takes the lead for media in the US. At the same time, Within is also said to manage some performance media duties in the US, MARKETING-INTERACTIVE understands. 

That month also saw the sportswear brand acquire a virtual sneaker startup RTFKT that creates NFT collectibles. Nike president and CEO, John Donahoe, said then that the acquisition will accelerate the brand's digital transformation and allow it to serve athletes and creators at the intersection of sport, creativity, gaming and culture.

Nike began setting the foundation for its push last year by filing for several new trademarks, including "Nike" and its iconic slogan "Just Do It" on 27 October. A day later, it did the same for the "Jordan" brand name as well as Air Jordan and Jumpman logos. In the application, Nike said the trademarks will be used for "downloadable virtual goods" and "entertainment services". These include computer programmes featuring footwear, clothing, headwear, eyewear, as well as non-downloadable virtual footwear, clothing, headwear, and sports equipment. 

Photo courtesy: 123RF

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